EUR/CAD Price Forecast: Tests 1.5650 barrier near descending channel's upper boundary

• EUR/CAD may approach the 1.5857, the highest level since July 2020.
• The 14-day Relative Strength Index moves slightly above the 50 level, suggesting a potential emergence of the bullish bias.
• The nine-day Exponential Moving Average at 1.5634 acts as the initial support.

EUR/CAD recovers its recent losses, trading around 1.5640 during the European hours on Wednesday. Technical analysis on the daily chart points to the potential weakening of a bearish bias, with the currency cross hovering near the upper boundary of the descending channel.

The EUR/CAD cross is positioned above the 50-day Exponential Moving Average (EMA), suggesting that short-term price momentum is stronger. Additionally, the 14-day Relative Strength Index (RSI) is positioned slightly above the 50 level, suggesting the potential emergence of a bullish bias.

On the upside, a successful breach above the descending channel may prompt the emergence of a bullish bias and lead the EUR/CAD cross to explore the region around 1.5857, the highest level since July 2020, reached on March 11.

The immediate support appears at the nine-day Exponential Moving Average (EMA) of 1.5634, followed by the 50-day EMA at 1.5599. Further declines below these levels could dampen the short- and medium-term price momentum and put downward pressure on the EUR/CAD cross to navigate the region around the descending channel's lower boundary around 1.5290.

EUR/CAD: Daily Chart